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Market Perspective

The global market for breakfast cereals and bars is now worth $32.5 billion (T-1). The United States remains the largest market globally followed by China, the United Kingdom, France and Germany (T-2). Sales of breakfast cereals and bars through all foodservice channels are worth $2.9 billion and growing, although retail sales still account for the majority of consumer expenditure.

Flavor Trends

In terms of flavors, fruit, nut and chocolate are still the go-to flavor combinations; however, a number of manufacturers are introducing premium and provenance ingredients in an attempt to add value. In addition, there has been growing interest in the health benefits of grains. Convenience is still king in this category, and increasingly manufacturers are looking to flavors to communicate health and convenience. Finally, consumers are more aware of natural ingredients and, again, flavors are being used to communicate health benefits in an area where it is difficult to establish health claims.

The Market For Flavors

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While global demand for breakfast cereals and bars is growing ahead of the total food and drink market, it remains a relatively small category in volume terms.